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The Curse of Windfall Gains in a Non Renewable Resource Oligopoly

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Author Info
Hassan Benchekroun
Ngo Van Long ()

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Abstract

We investigate the effect of stock discovery on the profits of non-identical oligopolists. We show that a uniform addition to all stocks could harm firms that are originally larger than average. One conclusion that could be drawn from the results is that a new technology that leads to more efficient exploitation of the available resource is not necessarily welcomed by all firms.

On étudie les effets de la découverte des stocks de ressources sur les profits des firmes asymétriques. On montre que l’augmentation uniforme des stocks pour toutes les firmes pourrait désavantager celles qui sont initialement les plus grandes. On déduit que la découverte d’une nouvelle technologie qui permet une augmentation d’efficacité d’extraction pour toutes les firmes pourrait réduire le profit de certaines firmes.

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Paper provided by CIRANO in its series CIRANO Working Papers with number 2006s-10.

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Date of creation: 01 May 2006
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Handle: RePEc:cir:cirwor:2006s-10

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Related research
Keywords: non-renewable resource oligopoly stock discovery découverte des stocks oligopole ressources naturelles

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This paper has been announced in the following NEP Reports: References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Benhabib, Jess & Radner, Roy, 1992. "The Joint Exploitation of a Productive Asset: A Game-Theoretic Approach," Economic Theory, Springer, vol. 2(2), pages 155-90, April.
  2. Benchekroun, Hassan, 2003. "Unilateral production restrictions in a dynamic duopoly," Journal of Economic Theory, Elsevier, vol. 111(2), pages 214-239, August. [Downloadable!] (restricted)
  3. Benchekroun, Hassan & Van Long, Ngo, 2002. "Transboundary Fishery: A Differential Game Model," Economica, London School of Economics and Political Science, vol. 69(274), pages 207-21, May. [Downloadable!] (restricted)
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  1. John Hartwick, 2006. "The Quadratic Oil Extraction Oligopoly," Working Papers 1095, Queen's University, Department of Economics. [Downloadable!]
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